Sunday, September 20, 2009

Europeans have VAT and many other taxes we do not have

Let's just say the way Europeans are taxed is a little different by method than it is done here.

We do have the VAT, the bund (federation), the lander (kinda like states) and the kommunen (village/city) tax.

The very word for tax in German translates to English as "help" or guide/steer and about 90-5% of the taxes are levied at the federal level.

The system is what we would consider progressive, and ranges anywhere from 0-45% for persons and anywhere from 15-30% for corporations.

With that tax, health care, social security, even prostitutes have a retirement, education or vocational training after high school is provided, we provide long term care for elders, accident care, the disabled are provided care and there are other benefits derived from the taxes paid or not paid.

Quite honestly, when I add up all of the taxes, taxes disguised as fees, on returns, bills I pay, etc. living here in CA, I'm at a little less than the highest 45% of German taxation without nearly the benefits.

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